The reality of a divorce means that many financial aspects of a person's life, such as retirement planning, get pushed into the background while that person deals with the myriad of emotions that often develop during the process. Afterwards, that person can be so caught up with taking care of their immediate monetary needs that they may forget to review and recalibrate their retirement plans. But what steps can an individual take to help get their retirement plans back on track?
After a divorce, an individual can find themselves with only half of their retirement assets. That is why it is imperative for a divorced person to put together a team of professionals that can help appraise their retirement situation both pre and post divorce. However, it may be difficult to use any individual who previously worked with them while they were married. In situations like this, they can seek new referrals from friends, relatives and family.
It's extremely important for someone who is divorced to develop a new budget that incorporates retirement planning. That's because it's very easy for someone to overspend since they are used to budgeting for two rather than one. Priorities change after a divorce and these priorities can include new monthly bills such as alimony and child support. So it's also a good idea to have a financial professional scrutinize the new budget in order to make sure that retirement planning has been included.
Additional steps that a newly divorced individual should consider are to review their social security benefits and to re-evaluate their retirement investments. However, revised financial planning is just one step that the newly divorced must deal with. Any Virginia resident who is considering getting a divorce may want to speak with a divorce attorney in order to get a better understanding of the financial consequences of this decision.
Source: huffingtonpost.com, "Resetting your retirement after divorce," Accessed Sep. 28, 2015
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